Discount Market Sale (DMS) - London

Hitman_007

Hello everyone,

I'm in the process of considering the purchase of a discount market sale property in London. I have a few questions I'd like to clarify:

1. If my work circumstances change, and I need to relocate out of London, am I allowed to rent the property? If not, what alternatives do I have aside from selling the house?
2. Regarding the resale of the property, as I'm required to sell it to an eligible buyer, what happens if I can't find one within the specified time frame (3 or 6 months)? Can I then sell the property on the open market to any buyer?
3. Given that I'm benefiting from a 20% discount on the property through the council, is it possible to staircase the property to full ownership (100%) by repurchasing the 20% share from the council in the future?

I greatly appreciate any assistance you can provide.

daveyjp

You need to ask all these questions of the vendor as the development will have specific clauses in the sale contract or planning documents.

hulu72

Hitman_007 said:

Hello everyone,

I'm in the process of considering the purchase of a discount market sale property in London. I have a few questions I'd like to clarify:

1. If my work circumstances change, and I need to relocate out of London, am I allowed to rent the property? If not, what alternatives do I have aside from selling the house?
2. Regarding the resale of the property, as I'm required to sell it to an eligible buyer, what happens if I can't find one within the specified time frame (3 or 6 months)? Can I then sell the property on the open market to any buyer?
3. Given that I'm benefiting from a 20% discount on the property through the council, is it possible to staircase the property to full ownership (100%) by repurchasing the 20% share from the council in the future?

I greatly appreciate any assistance you can provide.

As Daveyjp rightly points out you will need to check with the local council as there will be specific clauses from planning

Where I am though, you aren’t allowed to rent them out as the scheme is specifically designed to help people buy their own home so would sort of defeat the point if they were to be bought and rented out. However I know some places require you to gain permission from the council

Normally after the initial 3/6 month period, if no one buys who fits criteria then it is opened to the wider market

Your last point is pretty much standard in that you can’t staircase. They aren’t shared ownership where you would pay rent on the remaining share. That 20% will be held in perpetually, normally via something like a covenant